Bright Prospects for Partnership Between Capital Group Companies and Samsung Asset Management

In October 2015, a strategic partnership deal was struck between Capital Group Companies and Samsung Asset Management (SAM). Capital Group deals in asset and portfolio management for investors and is among the largest investment firms in the world. It manages assets worth 1.4 trillion dollars. On the other hand, Korean-based Samsung Asset Management is the leading asset manager in the Asian country with over 166 billion dollars in AUM.

Significant Aspects of the Deal

The partnership aims at co-developing asset allocation products and retirement solutions. This will subsequently build SAM’s investment capability while increasing Capital Group’s market diversification. The collaboration will focus on four key issues: investment management processes, product management, distribution channel support, and retirement solutions.

To comprehend Capital’s active management style, SAM’s associates and managers will take scheduled study trips to gather first-hand knowledge and experience on investment management tactics. On the other hand, Capital Group will utilize SAM’s multiple distribution pathways to channel its various products to the Asian market. This business relationship will include training that touches on asset management and how to understand client needs.

The two companies are confident that the mutually beneficial deal will grow their business interests. Sung-hoon Koo, CEO of Samsung Asset Management, acknowledged Capital Group’s in-depth mastery in retirement solutions for both individuals and institutions. Tim Armour was optimistic that the demand for savings, investment, and retirement products would increase in the coming years particularly in Korea.

Timothy Armour’s Thoughts on the Partnership deal

During the launch, Tim Armour concluded that Capital Group’s aim was to build investment alternatives worthy of satisfying the retirement, insurance, and savings needs of Koreans. He further mentioned that they would incorporate “The Capital System” (a philosophy that Capital Group employs while delivering its services to long-term investors) in their product development.

About Timothy Armour

Timothy D. Armour is the Chief Executive Officer and current Chairman of Capital Group. Tim assumed this position after the death of his predecessor and former chairman, Jim Rothenberg. He is also the Principal Executive Officer, Director, and Chairperson of Capital Research and Management Company. Additionally, he manages Equity Portfolios at Capital Group.

Tim became part of the Capital Group Companies team in 1983 as a participant in The Associates Program and later served as an Equity Investment Analyst. He now has over three decades of experience in the field. Tim attended Middlebury College where he acquired his degree in Economics.